3 ms·
One of the concepts that many people don’t get is differentiation between risk and uncertainty. These same people will then attempt to “model risk” and end up w
by tchalla 5y ago
One of the concepts that many people don’t get is differentiation between risk and uncertainty. These same people will then attempt to “model risk” and end up with (ironically) an “uncertain estimate”
https://en.m.wikipedia.org/wiki/Knightian_uncertainty https://en.m.wikipedia.org/wiki/Knightian_uncertainty
- potatoman22 5y agoThey define risk as having statistical noise or a varying parameter in the estimate, while uncertainty is lacking information about the target. Doesn't the presence of noise in an estimate imply that there's information you aren't accounting for? I don't see the importance of the distinction.